August 01, 2022

Intraday Update: ATVI

First off, I want to pass along a reminder that our next option session is this afternoon at 4:30 PM Eastern in the Options In Play room. I hope you all can make it!

ATVI is scheduled to report after the close today, though earnings are not expected to be a significant event (the Aug05 straddle is only pricing in ~$2.15). The company is in the process of being acquired by MSFT, so the biggest development would be if there is a material update on the progress of the deal. The Jan20 $80 - $90 call spread is a longer-term strategy targeting a narrowing of the deal spread and it will remain open into the earnings release. We are still looking for a move into the low-to-mid 80s to scale back risk on the position.

Open Positions

* The following Open Positions pertain to the Options In Play trade ideas from this and previous editions. Disclosure of the Trader Co-Author’s actual portfolio holdings, as of the date of each publication, is made below under "Trader Author Portfolio Holdings.".

Trader Author Portfolio Holdings

**As of the date and time of publication